1. You do not have to sign a life assurance retirement annuity (RA) contract that will last until you turn 55. However, in terms of the Income Tax Act, you may not withdraw any benefits from an RA before 55.
2. You may contribute to an RA for as long as you wish. You are no longer required to mature an RA at the age of 69.
3. No one can foretell the future. You could lose your source of income tomorrow for various reasons. If, as a result, you can’t keep up the contributions, it is likely the life assurance company will confiscate a portion of your savings. At CKR Financial Solutions we ONLY market Retirement Annuities that have a NIL Paid Up Penalty.
4. You are entitled to switch RA product providers at any stage, either because you want to go into another RA product or because you want to purchase an annuity (pension) after the age of 55 – but you may incur costs or penalties. At CKR Financial Solutions we will assist you with advising on ANY potential costs associated to your existing Retirement Annuities.
5. Reduction In Yield (RIY). This is one of the most important aspects of Investing, as it indicates the total cost of investment i.e if your Reduction In Yield (costs) are 3% per annum then you need to achieve a 13% Gross return to NEtt a return of 10%. At CKR Financial Solutions we provide advice on Retirement Annuity structures that have superior Reduction In Yields, in order for our clients to maximize their returns.
You can complain to the Pension Funds Adjudicator if, when you want to transfer, a product provider bogs you down in red tape and creates unacceptable delays.